STATE OF NEW YORK
        ________________________________________________________________________

            S. 3264                                                  A. 6487

                               2001-2002 Regular Sessions

                SENATE - ASSEMBLY

                                      March 6, 2001
                                       ___________

        IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
          ed, and when printed to be committed to the Committee on Higher Educa-
          tion

        IN  ASSEMBLY  -- Introduced by M. of A. CAHILL -- read once and referred
          to the Committee on Higher Education

        AN ACT to amend the education law, in relation to exempt  persons  under
          the profession of public accountancy

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 7407 of the education law is amended by adding  two
     2  new subdivisions g and h to read as follows:
     3    g.  Any  individual,  not licensed as a certified public accountant or
     4  public accountant pursuant to this article, from performing compilations
     5  or reviews, so long as the compilation or review is not  accompanied  by
     6  any statement, report, or wording indicating such individual is a certi-
     7  fied public accountant, public accountant, or auditor.
     8    h.  Any  individual,  not licensed as a certified public accountant or
     9  public accountant pursuant to this article, from using the following  or
    10  substantially  similar statement when performing compilations or reviews
    11  pursuant to subdivision g of this section:
    12    "(I/We) have prepared the accompanying (financial statements) of (name
    13  of entity) as of (time period) for the (period) then ended. This presen-
    14  tation is limited to preparing in  the  form  of  financial  statements,
    15  information  that  is the representation of (name of entity).  (I/We) do
    16  not express any form of assurance with respect to these financial state-
    17  ments."
    18    § 2. Subdivision 2 of section 7408 of the education law, as amended by
    19  chapter 994 of the laws of 1971, is amended to read as follows:
    20    2. Any person shall be guilty of a class A misdemeanor who shall  use,
    21  in  connection with the practice of public accountancy, or in any manner

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09080-01-1

        S. 3264                             2                            A. 6487

     1  tending to imply that he or she is an independent accountant or auditor,
     2  the designations "chartered accountant", "certified accountant", "expert
     3  accountant", "certified tax  accountant",  "tax  accountant",  "enrolled
     4  accountant",  "enrolled  public  accountant",  "registered  accountant",
     5  "licensed accountant",  "incorporated  accountant",  "registered  public
     6  accountant",  "licensed public accountant", or any abbreviation thereof,
     7  or the letters  "C.A.",  "E.A.",  "C.T.A.",  "T.A.",  "E.P.A.",  "R.A.",
     8  "L.A.", "I.A.", "P.A.", "R.P.A.", or, "L.P.A.", except as provided else-
     9  where in this article, or any other designation tending to imply that he
    10  or  she has expert knowledge in accounting or auditing.  Nothing in this
    11  subdivision shall prevent an individual enrolled to practice before  the
    12  United  States internal revenue service, pursuant to regulations promul-
    13  gated by the  internal  revenue  service,  from  using  the  designation
    14  "enrolled agent" or the letters "E.A.". This subdivision shall not apply
    15  to  any  designations authorized by a national credentialing body recog-
    16  nized by the department.
    17    § 3. This act shall take effect immediately.